SEC v. GPL Ventures LLC, et al.

Case No.  1:21-CV-06814-AKJ (S.D.N.Y.)

On August 13, 2021, the Commission filed a complaint (the “Complaint”) against GPL Ventures LLC (“GPL Ventures”), GPL Management LLC (“GPL Mgmt”), Alexander J. Dillon (“Dillon”), Cosmin I. Panait (“Panait”), HempAmericana, Inc. (“HempAmericana”), Salvador E. Rosillo (“Rosillo”), Seaside Advisors, LLC (“Seaside”), and Lawrence B. Adams (“Adams”) (collectively, the “Defendants”). The Complaint alleged that, from at least as early as 2017, GPL Ventures, GPL Mgmt, Dillion, and Panait (the “GPL Defendants”) acted as unregistered broker dealers by privately acquiring large blocks of stock in microcap issuers and publicly selling those blocks into the market for their own account. The GPL Defendants did not register with the Commission, and neither Dillon nor Panait was associated with a registered broker or dealer.

In addition, the Complaint alleged that from 2017 through at least late 2019, the GPL Defendants committed securities fraud by “scalping,” buying large blocks of HempAmericana stock for their own benefit, recommending the stock to others without disclosing their ownership or plans to sell the recommended stock, then selling the stock after making the recommendation into the price and volume increases triggered by the recommendation. Seaside and its CEO, Adams, participated in these scalping activities by promoting HempAmericana. HempAmericana’s CEO, Rosillo, provided misleading public disclosures concerning the GPL Defendants’ activities and filed false Regulation A offering circulars with the Commission. See Complaint. 

Without admitting or denying the allegations in the Commission's Complaint, the GPL Defendants consented to the entry of a final judgments. Among other relief, the GPL Defendants were ordered, and have paid, jointly and severally, $29,681,569 in disgorgement and $2,489,799 in prejudgment interest. Dillon and Panait were further ordered to pay civil money penalties of $3,500,000 each. In total, the GPL Defendants were ordered to pay $39,171,368 to the Commission. The Commission was ordered to hold all funds, together with interest and income earned thereon, pending further order of the Court. See GPL Defendant’s Final Judgment.

On November 13, 2024, the Court entered an order that established a Fair Fund for the $39,171,368 in disgorgement, prejudgment interest, and penalties paid by the GPL Defendants, along with any accrued interest (the “Fair Fund”); and appointed Heffler, Radetich & Saitta, LLP as the Tax Administrator of the Fair Fund to fulfill the tax obligations of the Fair Fund. See the Court’s Order. 

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov